Market Brief: Sula Vineyards Activity **Promoter Confidence Signals Rebound** Promoter activity has returned to Sula Vineyards as Founder and CEO Rajeev Suresh Samant increased his stake to **24.5%**. This represents the first such increase since the company’s IPO in December 2022. The move is widely viewed by market participants as a signal of long-term confidence from leadership, despite the stock facing significant technical and fundamental pressure in recent months. **Quarterly Financial Overview** The company reported a challenging Q3 for the fiscal year ending December 2025. Consolidated net profit plummeted by **67.6%** year-on-year, landing at **9.10 crore**. Revenue from operations also saw a decline of approximately **9.7%**, totaling **195.7 crore** for the quarter. These results underscore a difficult period for the core wine business, which has been impacted by both regulatory and demand-side shifts. **Regional and Operational Headwinds** The downturn was largely attributed to a one-time tactical destocking in Karnataka, Sula’s second-largest market. This move was intended to right-size channel inventory amidst subdued urban demand in Bengaluru. Additionally, the company faced rising operational costs, including a **1.7 crore** charge related to new labor code implementations. Consequently, EBITDA margins contracted significantly to **16.3%**, down from **24.5%** in the previous year. **Wine Tourism: The Growth Driver** While the core "Own Brands" segment faced headwinds, Sula's wine tourism wing emerged as a standout performer. The segment recorded its highest-ever quarterly revenue of **22 crore**, marking a **33.7%** year-on-year growth. This surge was fueled by a **17%** increase in visitor footfalls and the expansion of 'The Haven by Sula' resort. Wine tourism now contributes over **11%** to the total revenue mix. **Market Performance and Outlook** As of mid-February 2026, Sula Vineyards' stock is trading near its 52-week lows, hovering around the **178.00** to **180.00** range. The stock has declined roughly **40%** over the past year. However, management suggests that profitability may have bottomed out in Q3. Recovery is expected to be driven by a rebound in Maharashtra, the company's largest market, and strong festive demand in the premium segment. **Strategic Portfolio Stability** Despite volume challenges, Sula has maintained its focus on premiumization. The "Elite & Premium" category continues to account for approximately **80%** of own-brand revenue. Specifically, the 'Source' range demonstrated healthy double-digit growth, increasing its share within the portfolio to **11%**. This focus on high-margin products remains central to the company's strategy for margin normalization in the upcoming quarters.